Excess Liability Coverage

We cover damages a covered person is legally obligated to pay for personal injury or property damage caused by an occurrence:

• in excess of damages covered by the underlying insurance; or

• from the first dollar of damage where no underlying insurance is required under this policy and no underlying insurance exists; or

• from the first dollar of damage where underlying insurance is required under this policy but no coverage is provided by the underlying insurance for a particular occurrence,

unless stated otherwise or an exclusion applies.

Exclusions to this coverage are described in Exclusions.

“Follow form” means:

We cover damages to the extent they are both covered under the Required Primary Underlying Insurance and, not excluded under this part of your Masterpiece Policy.

Also, the limits of liability, defence coverages, cancellation and “other insurance” provisions of this policy

supersede and replace the similar provisions contained in such other policies. When this part of your policy is called upon to pay losses in excess of required primary

underlying policies exhausted by payment of claims, we do not provide broader coverage than provided by such policies. When no primary underlying coverage exists, the extent of coverage provided on a follow form basis will be determined as if the required primary underlying insurance had been purchased from us.

A “covered person” means:

• you or a family member;

• any person using a vehicle or watercraft covered under this part of your Masterpiece policy with permission from you or a family member with respect to their legal

responsibility arising out of its use:

• any person or organization with respect to their legal responsibility for covered acts or omissions of you or a family member; or

• any combination of the above.

“Damages” means the sum that is paid or is payable to satisfy a claim settled by us or resolved by judicial procedure or by a compromise we agree to in writing.

“Personal injury” means the following injuries, and resulting death:

• bodily injury;

• shock, mental anguish, or mental injury;

• false arrest, false imprisonment, or wrongful detention;

• wrongful entry or eviction;

• malicious prosecution or humiliation; and

• libel, slander, defamation of character, or invasion of privacy.

“Bodily injury” means physical bodily harm, including sickness or disease that results from it, and required care, loss of services and resulting death.

“Property damage” means physical injury to or destruction of tangible property and the resulting loss of its use. Tangible property includes the cost of recreating or replacing stocks, bonds, deeds,

mortgages, bank deposits, and similar instruments, but does not include the value represented by such instruments.

“Registered vehicle” means any motorized land vehicle not described in “unregistered vehicle”.

“Unregistered vehicle” means:

Trademarks of the Chubb Corporation and are used under license by Chubb Insurance Company of Canada. British Columbia Excess Liability Effective March 21, 2005 W3

• any motorized land vehicle not designed for or required to be registered for use on public roads;

• any motorized land vehicle which is in dead storage at your residence;

• any motorized land vehicle used solely on and to service a residence premises shown in Your Coverage and Premium Summary;

• any motorized land vehicle used to assist the disabled that is not designed for or required to be registered for use on public roads; or

• golf carts.

Excess uninsured and underinsured motorists protection (O.E.F.No.44)

This coverage is in effect only if excess uninsured and underinsured motorists protection is shown in Your Coverage and Premium Summary.

We cover damages for bodily injury a covered person is legally entitled to receive from the owner or operator of an uninsured or underinsured motorized land vehicle. We cover these damages in excess of the underlying insurance or the Required Primary Underlying Insurance for family protection, whichever is greater, if they are caused by an occurrence during the policy period, unless otherwise stated.

Amount of coverage. Regardless of the number of vehicles shown in Your Coverage and Premium Summary, the maximum amount of excess uninsured and

underinsured motorists protection coverage available for any one occurrence is the amount of coverage for Excess uninsured and underinsured motorists protection shown in Your Coverage and Premium Summary.

We will not pay more than this amount in any one occurrence for covered damages regardless of how many claims, vehicles, or people are involved in the occurrence.

This coverage will follow the form of (O.E.F.No.44) Defence coverages

We will defend a covered person against any suit seeking covered damages for personal injury or property damage that is either:

• not covered by any underlying insurance; or

• covered by an underlying policy as each Defence Coverage has been exhausted by payment of claims.

We provide this defence at our expense, with counsel of our choice, even if the suit is groundless, false, or fraudulent. We may investigate, negotiate, and settle any such claim or suit at our discretion.

As part of our investigation, defence, negotiation, or settlement, we will pay:

• all premiums on appeal bonds required in any suit we defend;

• all premiums on bonds to release attachments for any amount up to the amount of coverage (but we are not obligated to apply for or furnish any bond);

• all expenses incurred by us;

• all costs taxed against a covered person;

• all interest accruing after a judgement is entered in a suit we defend on only that part of the judgement we are responsible for paying.

We will not pay interest accruing after we have paid the judgement up to the amount of coverage;

• all prejudgement interest awarded against a covered person on that part of the judgement we pay or offer to pay. We will not pay any prejudgement interest based on that period of time after we make an offer to pay the amount of coverage;

• all earnings lost by each covered person at our request, up to $250 a day, to a total of

$10,000;

• other reasonable expenses incurred by a covered person at our request; and

Excess Liability Coverage

Trademarks of the Chubb Corporation and are used under license by Chubb Insurance Company of Canada. British Columbia Excess Liability Effective March 21, 2005 W4

• the cost of bail bonds required of a covered person because of a covered loss.

In jurisdictions where we may be prevented by local law from carrying out these Defence Coverages, we will pay only those defence expenses that we agree in writing to pay and that are incurred by you.

Exclusions

These exclusions apply to this part of your Masterpiece Policy, unless stated otherwise.

Motor vehicles with less than four wheels and motor homes. We do not cover any damages arising out of the ownership, maintenance, use, loading, or unloading of any motor vehicle with less than four wheels or motor home:

• owned by you or a family member; or

• furnished to, made available or rented to you or a family member for longer than 30 days,

unless the motor vehicle with less than four wheels or motor home is shown in Your Coverage and Premium Summary. The coverage for motor vehicles with less than four wheels and motor homes is on a follow form basis.

Aircraft. We do not cover any damages arising out of the ownership, maintenance, use, loading, unloading, or towing of any aircraft. We do not cover any property damage to aircraft rented to, owned by, or in the care, custody or control of a covered person.

Large watercraft. We do not cover any damages arising out of the ownership, maintenance, use, loading, unloading, or towing of any watercraft 8 metres (26 feet) or longer or with more than 50 engine rated horsepower owned or controlled, directly or indirectly, by a covered person, or which is

rented by, furnished to, or made available to a covered person for longer than 30 days. But we do cover watercraft being stored, unless another exclusion applies. Coverage is provided on a follow form basis if the watercraft is listed in Your Coverage and Premium Summary.

Coverage is also provided on a follow form basis when notice is given to us within 30 days after you acquire a watercraft. If we agree to insure it, you must pay the additional premium from the date acquired.

Hovercraft. We do not cover any damages arising out of the ownership, maintenance, use, loading, unloading, or towing of any hovercraft. We do not cover any property damages to hovercraft rented to, owned by, or in the care, custody or control of a covered person..

Owned or furnished motorized land vehicle. We do not cover any damages arising out of the ownership, maintenance, use, loading or unloading of any motorized land vehicle owned or controlled directly or indirectly by a covered person, or furnished to or made available to a covered person for longer than 90 days. But we do provide coverage if at least one motorized land vehicle is shown in Your Coverage and Premium Summary for Excess Liability Coverage, unless another exclusion applies.

Motorized land vehicle racing or track usage. We do not cover any damages arising out of the ownership, maintenance or use of any motorized land vehicle:

• during any instruction, practice, preparation for, or participation in, any competitive, stunting activity, or timed event of any kind;

• on a racetrack, test track or other course of any kind.

Watercraft and aircraft racing or track usage. We do not cover any damages arising out of the ownership, maintenance or use of any watercraft or aircraft during any instruction, practice, preparation for, or participation in, any competitive, prearranged or organized racing, speed contest, rally, sports event, stunting activity or timed event of any kind.

Excess Liability Coverage

Trademarks of the Chubb Corporation and are used under license by Chubb Insurance Company of Canada. British Columbia Excess Liability Effective March 21, 2005 W5

This exclusion does not apply to sailboat racing even if the sailboat is equipped with an auxiliary motor.

Motorized land vehicle-related jobs. We do not cover any damages arising out of the ownership, maintenance, or use of a

motorized land vehicle by any person who is employed or otherwise engaged in the business of selling, repairing, servicing, storing, parking, testing, or delivering motorized land vehicles. This exclusion does not apply to you, a family member, or your employee or an employee of a family member for damages arising out of the ownership, maintenance or use of a

motorized land vehicle owned by, rented to, or furnished to you or a family member.

Watercraft-related jobs. We do not cover any damages arising out of the ownership, maintenance, or use of a watercraft by any person who is engaged by or employed by, or is operating a marina, boat repair yard, shipyard, yacht club, boat sales agency, boat service station, or other similar organization.

This exclusion does not apply to damages arising out of the ownership, maintenance, or use of a watercraft covered under this part of your Masterpiece policy, by you, a family member, or your captain or your full time paid crew member maintaining or using this watercraft with permission from you or a family member.

Motorized land vehicle and watercraft loading. We do not cover any person or organization, other than you or your employees, with respect to the loading or unloading of motorized land vehicles or watercraft.

Workers’ compensation or disability. We do not cover any damages a covered person is legally required to provide or voluntarily provides under any workers’ compensation, disability benefits, employment insurance, or other similar laws. But we do provide coverage in excess over any other insurance for damages a covered person is legally required to pay for bodily injury to a

domestic employee of a residence shown in Your Coverage and Premium Summary which are not compensable under workers’ compensation, unless another exclusion applies.

Director’s liability. We do not cover any damages for any covered person’s actions or failure to act as an officer or member of a board of directors of any corporation or organization. However, we do cover such damages if you or a family member is:

• an officer or member of a board of directors of a homeowner or cooperative association or condominium corporation; or

• not compensated as an officer or member of a board of directors of a not-for-profit

corporation or organization, unless another exclusion applies.

Damage to a covered person’s property. We do not cover any person for property damage to property owned by any covered person.

Damage to property in your care. We do not cover any person for property damage to property of others rented to, occupied by, used by, or in the care of any covered person, to the extent that the covered person is required by contract to provide insurance. But we do cover such damages for loss caused by fire, smoke, or explosion unless another exclusion applies. This exclusion does not apply to property damage to a motorized land vehicle rented to a covered person if no underlying insurance is required under this policy and no underlying insurance exists.

Discrimination. We do not cover any damages arising out of discrimination due to age, race, colour, sex, creed, national origin, or any other

discrimination.

Intentional acts. We do not cover any damages arising out of an act intended by any covered person to cause personal injury or property damage, even if the injury or damage is of a different degree or type than actually intended or expected. But we do cover such damages if the act was intended to protect people or property unless another exclusion applies.

An intentional act is one whose consequences could have been foreseen by a reasonable person.

Excess Liability Coverage

Trademarks of the Chubb Corporation and are used under license by Chubb Insurance Company of Canada. British Columbia Excess Liability Effective March 21, 2005 W6

Molestation, misconduct, or abuse. We do not cover any damages arising out of any actual, alleged, or threatened:

• sexual molestation;

• sexual misconduct or harassment; or

• abuse.

Nonpermissive use. We do not cover any person who uses a motorized land vehicle or watercraft without permission from you or a family member.

Business pursuits. We do not cover any damages arising out of a covered person’s business pursuits, investment or other for-profit activities, any of which are conducted on behalf of a covered person or others, or business property except on a follow form basis.

But we do cover damages arising out of volunteer work for an organized charitable, religious or community group, an incidental business away from home, incidental business at home, incidental business property, incidental farming, or residence premises conditional business liability, unless another exclusion applies. We also cover damages arising out of your

ownership, maintenance, or use of a private passenger motor vehicle in business activities other than selling, repairing, servicing, storing, parking, testing, or delivering motorized land vehicles.

“Incidental business away from home” is a employed sales activity, or a self-employed business activity normally undertaken by persons under the age of 18 such as newspaper delivery, babysitting, caddying, and lawn care. Either of these activities must:

• not yield gross revenues in excess of

$15,000 in any year;

• have no employees subject to any workers’ compensation, disability

benefits, employment insurance, or other similar laws; and

• conform to local, provincial, and federal laws.

“Incidental business at home” is a business activity, other than farming, conducted in whole or in part on your residence premises which must:

• not yield gross revenues in excess of $15,000 in any year, except for the business activity of managing one’s own personal investments, regardless of where the revenues are produced;

• have no employees subject to any workers’

compensation, disability benefits, employment insurance, or other similar laws; and

• conform to local, provincial, and federal laws.

“Incidental business property” is limited to the rental or holding for rental, to be used as a residence, of a condominium or cooperative unit owned by you, an apartment unit rented to you, a one or two family dwelling owned by you, or a three, four, five, or six family dwelling owned and occupied by you. We provide this coverage only for premises listed in Your Coverage and Premium Summary unless the rental or holding for rental is for:

• a residence of yours that is occasionally rented and that is used exclusively as a residence; or

• part of a residence of yours by one or two roomers or boarders; or

• part of a residence of yours as an office, school, studio, or private garage.

“Incidental farming” is a farming activity which meets all of the following requirements:

• is incidental to your use of the premises as your residence;

• does not involve employment of others for more than 1,500 hours of farm work during the policy period;

• does not produce more than $25,000 in gross annual revenue from agricultural operations;

Excess Liability Coverage

Trademarks of the Chubb Corporation and are used under license by Chubb Insurance Company of Canada. British Columbia Excess Liability Effective March 21, 2005 W7

• and with respect to the raising or care of animals:

• does not produce more than $50,000 in gross annual revenues;

• does not involve more than 25 sales transactions during the policy period;

• does not involve the sale of more than 50 animals during the policy period.

“Residence premises conditional business liability” is limited to business or

professional activities when legally conducted by you or a family member at your residence shown in Your Coverage and Premium Summary. If there is no other valid and collectible insurance, we provide coverage only for personal injury or property damage arising out of the physical condition of that residence if:

• you do not have any employees involved in your business or

professional activities who are subject to any workers’ compensation, disability benefits, employment insurance, or other similar laws; or, if you are a doctor or dentist, you do not have more than two employees subject to such laws; and;

• you are a home day care provider whose annual gross revenues from this activity do not exceed $5,000.

We do not cover damages or consequences resulting from business or professional care or services performed or not performed.

The following exclusion, Contamination, applies only to “Incidental farming” as described under the exclusion, Business pursuits.

Contamination. We do not cover any actual

In document Introduction. Agreement. Definitions (Page 175-184)